The Impact of Urban Transit Systems on Property Values: A Model and Some Evidences from the City of Naples

A hedonic model for estimating the effects of transit systems on real estate values is specified and calibrated for the city of Naples. The model is used to estimate the external benefits concerning property values which may be attributed to the Naples metro at the present time and in two future scenarios. The results show that only high-frequency metro lines have appreciable effects on real estate values, while low-frequency metro lines and bus lines produce no significant impacts. Our results show that the impacts on real estate values of the metro system in Naples are significant, with corresponding external benefits estimated at about 7.2 billion euros or about 8.5% of the total value of real estate assets.